Uber Cuts Fares To ₹6/Km For UberGo In Delhi-NCR

In this March 29, 2016 photo, Ola cabs, left, waiting for customers are parked next to other cars in Kolkata, India. Aiming to wrest control of Indiaâs booming taxi market, two cab-hailing smartphone apps, Uber and Ola, are promising hundreds of millions in new investments while also facing off with one another in court. (AP Photo/ Bikas Das)

The taxi price wars have begun again. Uber has slashed fares for its UberGo rides in Delhi-NCR to compete with Ola’s Micro, the cheapest ride option offered on Ola cabs.

According to a statement on Uber's website, it cut the price of UberGo to ₹6 per km from ₹8 per km. That would bring it on par with what rival Ola charges for its Micro offering. It's unclear if Uber plans to cut prices in other cities outside NCR.

Uber is flush with cash it has raised recently. Earlier this month, Uber raised $3.5 billion from a Saudi fund, and plans to invest a huge portion of that in its India operations, according to media reports. Uber is also reportedly in talks to raise a loan of up to $2 billion, according to a report in The Wall Street Journal.

Uber has also reportedly pumped at least ₹43 crore in Mumbai-based car leasing firm Xchange Leasing India Pvt. Ltd between January and March this year, according to a Mint report. The partnership with the leasing firm is part of Uber's plan to launch a car leasing program for drivers, a move that would increase the number of Uber drivers. Ola also offers a similar car leasing program.

In April, Uber cut fares by up to 22 per cent in 10 non-metro cities for all its rides.

Meanwhile, Ola is also reportedly planning to raise its new funding -- $300 million to $400 million from new and existing investors – to take on increasing competition from Uber, Mint reported earlier this week. Ola last raised $500 million in November.